Macroeconomics Exam/Midterm 2 KT

Macro at UOP definitions. There ya go.

30 cards   |   Total Attempts: 183
  

Cards In This Set

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Consumer spending
Household spending on goods and services from domestic and foreign firms.
Disposable income
Income plus gov't transfers minus taxes; the total amt of household income available to spend on consumption and saving.
Exports
Goods and services sold to other countries.
Gov't purchases of goods and services
Total purchases by fed, state, and local gov'ts on goods and services.
Imports
Goods and services purchased from other countries.
Investment spending
Spending on productive physical capital, such as machinery and construction of structures, and on changes to inventories.
Demand shock
An event that shifts the aggregate demand curve.
Inflationary gap
Aggregate output is above potential output.
Marginal propensity to consume
The increase in consumer spending when disposable income rises by $1.
Recessionary gap
Aggregate output is below potential output.
(spending) multiplier
The ratio of the total change in real GDP caused by an autonomous change in aggregate spending to the size of that autonomous change.
Supply shock
An event that shifts the short-run aggregate supply curve.
Aggregate production function
Hypothetical function that shows how productivity (real GDP per worker) depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology.
Convergence hypothesis
Int'l differences in real GDP per capita tend to narrow over time.
Human capital
The improvement in labor created by the education and knowledge embodied in the workforce.